The government has stepped up efforts to streamline gas distribution and ease supply pressures, directing faster processing of city gas projects while increasing allocations of commercial LPG to key sectors amid a challenging geopolitical environment.The Petroleum and Explosives Safety Organisation (PESO) has instructed its offices to dispose of City Gas Distribution (CGD) applications within 10 days, aiming to accelerate the rollout of piped natural gas (PNG), an official statement said.Commercial LPG consumers in major cities and urban areas have also been advised to shift to PNG as part of a broader strategy to reduce dependence on liquefied petroleum gas. Domestic LPG supply remains stable, with no reported dry-outs at distributorships and normal delivery patterns across the country, the statement said, adding that most deliveries are being carried out through the Delivery Authentication Code (DAC) while panic bookings have subsided, PTI reported.On the commercial LPG front, the government has progressively increased allocations. After restoring 20 per cent supply earlier, an additional 10 per cent allocation linked to PNG expansion reforms was announced on March 18. A further 20 per cent allocation was cleared on March 21, taking total commercial LPG supply to 50 per cent.The latest increase prioritises sectors such as restaurants, dhabas, hotels, industrial canteens, food processing units, dairy operations, community kitchens and subsidised food outlets run by state governments and local bodies. Provision has also been made for 5 kg cylinders for migrant workers.Around 20 states and Union Territories have implemented the revised allocation guidelines, while public sector oil marketing companies are supplying commercial LPG in the remaining regions. In the past eight days, about 15,440 tonnes of LPG have been lifted by commercial entities.Educational institutions and hospitals continue to receive priority, accounting for nearly half of the total commercial LPG allocation. Despite global uncertainties affecting supply, the government indicated that domestic availability remains under control while efforts continue to transition urban consumers towards PNG.

Experts have warned of another “twist” to the cost-of-living story in the months ahead, as war in the Middle East is set to send energy bills soaring.

The rate of Consumer Prices Index (CPI) inflation has been gradually easing back towards the Bank of England’s two per cent target level since last summer.

Some analysts are expecting CPI to have held relatively steady in February, or dipped slightly, from the three per cent level recorded in January.

Official figures for last month will be published on Wednesday.

Economists for Deutsche Bank and Pantheon Macroeconomics said they are anticipating CPI to hold steady at three per cent in February, with lower fuel and services inflation being offset by higher clothes prices and air fares.

Edward Allenby, senior economist for Oxford Economics, said he thinks CPI inflation fell to 2.8 per cent in February, largely thanks to a predicted fall in petrol prices and slower inflation in the services sector.

Analysts for Barclays said they are expecting the headline rate to dip to 2.9 per cent, also partly because of lower pump prices during the month.

But Sanjay Raja, Deutsche Bank’s chief UK economist, said the inflation outlook has “rarely been more uncertain than it is now”.

He wrote in a research note: “We expect the UK’s disinflation story will take another twist on its (eventual) way down to target.

“The good news is that CPI is still expected to slide down in the coming months.

“The bad news? Higher energy prices appear poised to lift CPI meaningfully over the summer, adding yet another hump in the inflation profile.”

Economists have been ripping up previous projections in recent days and warning that the US-Israel war with Iran has muddied the outlook for the economy.

The Bank of England said on Thursday that recent increases in wholesale energy costs would delay the return of CPI inflation to target, as it was already seeing higher fuel prices.

It is now expecting inflation to be around three per cent in the second quarter of 2026, up from the 2.1 per cent that had been forecast in February.

The central bankers stressed that the situation is volatile and events over the next six weeks could shed light on the scale of the disruption and impact on prices.

Economists have weighed in with their own projections of where inflation could go if things persist.

Mr Allenby said he is now expecting CPI inflation to exceed four per cent during the second half of 2026.

“Under our updated assumptions, we now anticipate a much sharper rise in petrol prices, while higher wholesale gas prices cause a 19 per cent increase in the Ofgem energy price cap in July,” he said.

Pantheon Macroeconomics agreed that, if the latest spike in gas prices is sustained, then CPI could be headed to four per cent later this yar.

Global airlines have suffered their worst financial shock since the COVID‑19 pandemic as the ongoing war involving US Israel and Iran has disrupted industry operations, wiping more than $50 billion off the market value of the world’s largest carriers amid rising fears of fuel shortages.The conflict, now entering its fourth week, has grounded flights, disrupted key Gulf hub airports and driven jet fuel prices sharply higher, compounding pressure on an industry that was rebounding strongly following pandemic‑related losses.According to Financial Times calculations, the 20 largest publicly listed airlines have collectively lost about $53 billion in market capitalisation since the war began. In response, airline executives have warned of a potential rise in ticket prices as carriers seek to protect shrinking profit margins.Jet fuel, which accounts for roughly a third of operating costs for airlines, has doubled in price since the United States and Israel launched attacks on Iran at the end of February. Many carriers had hedged against fuel price swings, but the rapid rise is expected to force airlines to pass on costs to passengers.“Fuel spiked quite heavily after the Ukraine invasion in 2022 as well, but this has gone further north,” easyJet chief executive Kenton Jarvis told FT, describing the current crisis as the most significant upheaval since the pandemic closed global skies in 2020.Executives also point to broader structural challenges, including the risk that sustained high fares may dampen demand. Carsten Spohr, CEO of Lufthansa, said higher ticket prices were unavoidable but expressed concern that they could weaken long‑term demand. “Our average profit is about €10 per passenger, there’s no way you can absorb the additional cost,” he said.In addition to passenger traffic pressures, airlines are preparing contingency plans for possible jet fuel shortages. Air France‑KLM CEO Ben Smith said the carrier is drawing up measures to cope with potential supply squeezes, including scaling back services on some Asian routes.The crisis has hit Middle Eastern carriers particularly hard. Carriers such as Emirates, Etihad and Qatar Airways have had to sharply reduce schedules due to airspace closures and a collapse in regional tourism, industry officials say. Despite the severity of the current disruption, Willie Walsh, head of the International Air Transport Association (IATA), noted that it still falls short of the pandemic’s impact but is reminiscent of the downturn in transatlantic demand after the 9/11 attacks, according to FT.

The conflict’s ripple effects are also visible in cargo operations, as freight traffic shifts from disrupted shipping routes to air cargo, straining airport facilities. At Geneva airport, for example, freight re‑routing has led to overflow onto services bound for Paris.Industry observers remain hopeful that airline valuations and demand will rebound once the conflict abates. “The share price has moved against all airlines since the start of the conflict,” Jarvis said, adding that short sellers would likely close positions quickly if a ceasefire is announced.